Public Company Information:

NYSE:

JWA

NYSE:

JWB

"We are pleased to report that we delivered on our revenue and earnings guidance for the year"

HOBOKEN, N.J.--(BUSINESS WIRE)--John Wiley & Sons, Inc. (NYSE:JWa and JWb), a global provider of
knowledge and knowledge-enabled services that improve outcomes in
research, professional practice, and education, today announced the
following results for the fourth quarter and fiscal year 2015, ending
April 30, 2015:

Change

$ millions

FY15

FY14

ExcludingFX

IncludingFX

ADJUSTED

Revenue

Q4

$442

$457

2

%

(3

%)

Full Year

$1,822

$1,775

4

%

3

%

EPS

Q4

$0.81

$0.77

17

%

5

%

Full Year

$3.26

$3.05

10

%

7

%

US GAAP

Revenue

Q4

$442

$457

(3

%)

Full Year

$1,822

$1,775

3

%

EPS

Q4

$0.79

$0.60

32

%

Full Year

$2.97

$2.70

10

%

Please see the attached financial schedules for more detail

Management Commentary

“We are pleased to report that we delivered on our revenue and earnings
guidance for the year,” said Mark Allin, President and CEO of Wiley. “On
a constant currency basis, our largest and most profitable business,
Research journals (‘Research Communication’) delivered 4% revenue growth
for the year. Our strategic digital solutions businesses also
contributed to our growth, with digital products and services rising to
60% of revenues for the full year. Revenue growth, the continued shift
to digital, and additional savings from restructuring all contributed to
9% operating income growth for the year.”

Fiscal Year 2016 Outlook

Wiley’s fiscal year 2016 outlook is for low-single-digit revenue growth
and flat adjusted EPS growth on a constant currency basis and excluding
the adverse transitional impact of shifting to time-based journal
subscription agreements. As previously announced, Wiley is moving to
time-based digital journal subscription agreements for calendar year
2016 in order to simplify the contracting and administration of such
agreements. The change will shift roughly $35 million of revenue and
$0.35 of EPS from FY16 to FY17, with recurring effect annually
thereafter. The change will not impact free cash flow. Included in the
EPS guidance is an incremental expense impact of more than $0.15 for the
previously announced ERP implementation as compared to FY15.

Foreign Exchange (FX)

Wiley generates half of its revenue from outside the United States, and
is therefore exposed to a stronger dollar, particularly in relation to
the euro and pound sterling. For fiscal year 2015, the weighted average
rates for sterling and the euro were 1.60 and 1.25, respectively, on a
US dollar equivalent basis. Also, throughout this report, references are
made to variances “excluding foreign exchange” or “on a constant
currency basis”; such amounts exclude both currency translation effects
and transactional gains and losses.

Adjusted Results

The Company provides financial measures referred to as “adjusted”
revenue, contribution to profit, and EPS,which exclude
restructuring and impairment charges, deferred tax benefits related to a
UK corporate income tax rate reduction, and other nonrecurring tax
benefits. Variances to adjusted revenue, contribution to profit, and EPS
are on a constant currency basis unless otherwise noted. Management
believes the exclusion of such items provides additional information to
facilitate the analysis of results. These non-GAAP measures are not
intended to replace the financial results reported in accordance with
GAAP.

Fourth Quarter Summary

Revenue on a constant currency basis rose 2% to $442 million.
Growth in Professional Development (+10%), aided by the CrossKnowledge
and Profiles International acquisitions, and Education (+2%) offset a
decline in Research (-1%). Organic revenue decreased 1% at constant
currency, while revenue on a US GAAP basis declined 3% due to the
adverse impact of foreign exchange.

Adjusted earnings per share (EPS) on a constant currency basis grew
17% to $0.81 due to restructuring savings, higher gross margins
from the shift to digital, and a lower effective income tax rate. Adjusted
EPS excludes certain one-time or unusual items in both years as
further described in the attached reconciliation of US GAAP to
Adjusted EPS. US GAAP EPS for the fourth quarter grew 32%.

Wiley recorded a restructuring charge of $4.9 million this
quarter for severance and other costs related to reorganization and
consolidation across the business.

CEO Update: In the quarter, EVP and COO Mark Allin was named
Wiley’s 12th President and CEO after the retirement of Stephen M.
Smith. Prior to serving as Chief Operating Officer, Mr. Allin had been
EVP, Professional Development.

Fiscal Year Summary

Revenue on a constant currency basis grew 4% over prior year to
$1,822 million, with organic growth in Research (+2%) and Education
(+3%), as well as contributions from acquisitions in Professional
Development (+13%), driving results. Total organic revenue, which
excludes CrossKnowledge and Profiles International, increased modestly
(+1%) over prior year at constant currency. Revenue grew 3% on a US
GAAP basis.

Adjusted EPS on a constant currency basis grew 10% to $3.26
with revenue growth, higher gross margins from the shift to digital,
restructuring savings, and a lower effective income tax rate. The
adverse impact of foreign exchange compared to the prior year was
-$0.11 per share. Adjusted EPS excludes certain one-time or
unusual items in both years, as described in the attached
reconciliation of US GAAP to Adjusted EPS. US GAAP EPS for fiscal year
2015 was $2.97 vs. $2.70 in the prior year.

Adjusted shared services and administrative costs were
essentially flatfor the year at $494 million due to
restructuring, procurement, and outsourcing savings offset by
additional investment in new business growth. Lower Distribution and
Operation Services (-10%) and Finance (-1%) expense offset higher
Technology and Content Management (+2%) and Other Administration (+6%)
expense.

Restructuring Charges: Wiley recorded $29 million in
restructuring charges principally related to facility consolidations
and dispositions in connection with prior restructuring actions, as
well as severance costs related to reorganization and consolidation.

Free Cash Flow of $247 million was $4 million behind prior year
due to increased investment in technology and restructuring payments
related to severance.

Net Debt and Cash Position: Net debt (long-term debt less cash
and cash equivalents) at the end of April was $293 million, up from
$214 million at the end of the prior year due to the acquisition of
CrossKnowledge. Net debt to EBITDA was at 0.7 on a trailing twelve
month basis. Cash and cash equivalents as of April 30, 2015 were $457
million.

Share repurchases: In fiscal year 2015, Wiley repurchased 1.1
million shares for $62 million, an average cost of $57.26. As of April
30, the Company had nearly 2.2 million shares remaining in the
repurchase program announced in June 2013. Wiley did not repurchase
shares in the fourth quarter.

Dividend: In June 2014, Wiley increased its quarterly dividend
by 16% to $0.29, or $1.16 annualized. It was the 21st consecutive
annual increase.

RESEARCH

Revenue: Fourth quarter revenue on a constant currency basis
declined 1% to $275 million, with a decline in journal subscription
(-2%) and print book (-8%) revenue offsetting growth in other journal
revenue (+6%), digital books (+3%), and funded access (+3%). For the
year, revenue on a constant currency basis rose 2% to $1,041 million,
driven by journal subscriptions (+1%), funded access (+29%), and other
journal revenue (+15%), which offset an overall book decline of 7%.

Adjusted Contribution to Profit: Fourth quarter adjusted
contribution to profit grew 2% on a constant currency basis to $99
million, with procurement and outsourcing savings offsetting the
revenue decline. For the year, adjusted contribution to profit grew 5%
on a constant currency basis to $320 million, reflecting revenue
growth and gross margin expansion. Gross margin improved due to
procurement and outsourcing savings, as well as the continuing shift
to digital.

Calendar Year 2015 Journal Subscriptions: At the end of April,
calendar year 2015 journal subscriptions were up 1% on a constant
currency basis, with 97% of targeted business closed for the 2015
volume year.

Society Business: Two new society contracts were signed in the
three month period ending April with combined annual revenue of $4
million; 11 were renewed with combined annual revenue of $4 million;
and five with combined annual revenue of $5 million were not renewed.
For calendar year 2015, nine new society contracts were signed with
combined annual revenue of $4 million, and seven with combined annual
revenue of $8 million were not renewed, for an annualized revenue loss
on a calendar year basis of $4 million. This compares to an annualized
revenue gain of $11 million in CY14 and $20 million in CY13.
Additionally, CY15 includes renewals of 121 contracts with combined
annual revenue of $57 million.

PROFESSIONAL DEVELOPMENT

Revenue: Fourth quarter revenue grew 10% on a constant currency
basis to $100 million due to revenue contributions from CrossKnowledge
and Profiles International (+$15 million) and strong growth in Online
Test Preparation (+34%), which more than offset continued weakness in
Book sales (-9%). Excluding the acquisitions, which were closed on May
1 and April 1, 2014, respectively, revenue declined 5%. For the year,
revenue on a constant currency basis increased 13% to $407 million,
but decreased 5% excluding the acquisitions, driven by a continued
decline in print and digital books.

Adjusted Contribution to Profit: Fourth quarter adjusted
contribution to profit grew 30% on a constant currency basis to $12
million primarily due to restructuring savings, which offset modest
dilution from the two recent acquisitions. For the year, adjusted
contribution to profit grew 28% to $43 million. Gross margin improved
due to the shift to higher margin solutions businesses.

Institute of Management Accountants (IMA) India Partnership: In
the quarter, the IMA® announced a partnership agreement in
India with Wiley to offer Wiley’s Certified Management Accountant Exam
(CMA) Learning System as part of a full offering that includes live
training from Miles Professional Education, a major professional
certification course provider in India.

Online Program Management (OPM): Education Services/Deltak
secured two new large university partners in the quarter, the
University of Delaware (US) and University College Cork (Ireland).
University College Cork is the second international partner signed by
Deltak and is one of Ireland’s largest educational institutions, with
18,000 students. At fiscal year-end, Deltak had 38 partners and 200
degree programs under contract.

This release contains certain forward-looking statements concerning the
Company's operations, performance, and financial condition. Reliance
should not be placed on forward-looking statements, as actual results
may differ materially from those in any forward-looking statements. Any
such forward-looking statements are based upon a number of assumptions
and estimates that are inherently subject to uncertainties and
contingencies, many of which are beyond the control of the Company, and
are subject to change based on many important factors. Such factors
include, but are not limited to (i) the level of investment in new
technologies and products; (ii) subscriber renewal rates for the
Company's journals; (iii) the financial stability and liquidity of
journal subscription agents; (iv) the consolidation of book wholesalers
and retail accounts; (v) the market position and financial stability of
key online retailers; (vi) the seasonal nature of the Company's
educational business and the impact of the used book market; (vii)
worldwide economic and political conditions; (viii) the Company's
ability to protect its copyrights and other intellectual property
worldwide (ix) the ability of the Company to successfully integrate
acquired operations and realize expected opportunities and (x) other
factors detailed from time to time in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no obligation
to update or revise any such forward-looking statements to reflect
subsequent events or circumstances.

About Wiley

Wiley is a global provider of knowledge and knowledge-enabled services
that improve outcomes in areas of research, professional practice, and
education. Through the Research segment, the Company provides
digital and print scientific, technical, medical, and scholarly
journals, reference works, books, database services, and advertising.
The Professional Development segment provides digital and print
books, online assessment and corporate learning services, and test prep
and certification. In Education, Wiley provides education
solutions including online program management services for higher
education institutions and course management tools for instructors and
students, as well as print and digital content.

JOHN WILEY & SONS, INC.

UNAUDITED SUMMARY OF OPERATIONS

FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED

APRIL 30, 2015 AND 2014

(in thousands, except per share amounts)

FOURTH QUARTER ENDED APRIL 30,

2015

2014

% Change

US GAAP

Adjustments(A,C)

Adjusted

US GAAP

Adjustments(A,C)

Adjusted

US GAAP

Adjustedexcl. FX

Revenue

$

441,646

-

441,646

457,089

-

457,089

-3

%

2

%

Costs and Expenses

Cost of Sales

116,844

-

116,844

126,173

-

126,173

-7

%

-3

%

Operating and Administrative

249,459

-

249,459

256,366

-

256,366

-3

%

2

%

Restructuring Charges (A)

4,925

(4,925

)

-

15,395

(15,395

)

-

Amortization of Intangibles

12,355

-

12,355

11,613

-

11,613

6

%

11

%

Total Costs and Expenses

383,583

(4,925

)

378,658

409,547

(15,395

)

394,152

-6

%

1

%

Operating Income

58,063

4,925

62,988

47,542

15,395

62,937

22

%

10

%

Operating Margin

13.1

%

14.3

%

10.4

%

13.8

%

Interest Expense

(4,062

)

-

(4,062

)

(3,568

)

-

(3,568

)

14

%

14

%

Foreign Exchange Gain

(1,086

)

-

(1,086

)

(337

)

-

(337

)

Interest Income and Other

839

-

839

690

-

690

22

%

22

%

Income Before Taxes

53,754

4,925

58,679

44,327

15,395

59,722

21

%

10

%

Provision for Income Taxes (A,C)

6,857

3,945

10,802

8,436

5,331

13,767

-19

%

-8

%

Net Income

$

46,897

980

47,877

35,891

10,064

45,955

31

%

16

%

Earnings Per Share- Diluted (A,C)

$

0.79

0.02

0.81

0.60

0.17

0.77

32

%

17

%

Average Shares - Diluted

59,368

59,368

59,368

59,925

59,925

59,925

TWELVE MONTHS ENDED APRIL 30,

2015

2014

% Change

US GAAP

Adjustments(A,C)

Adjusted

US GAAP

Adjustments(A-D)

Adjusted

US GAAP

Adjustedexcl. FX

Revenue

$

1,822,440

-

1,822,440

1,775,195

-

1,775,195

3

%

4

%

Costs and Expenses

Cost of Sales

499,683

-

499,683

506,879

-

506,879

-1

%

0

%

Operating and Administrative

1,005,000

-

1,005,000

969,456

-

969,456

4

%

5

%

Restructuring Charges (A)

28,804

(28,804

)

-

42,722

(42,722

)

-

Impairment Charges (B)

-

-

-

4,786

(4,786

)

-

Amortization of Intangibles

51,214

-

51,214

44,679

-

44,679

15

%

14

%

Total Costs and Expenses

1,584,701

(28,804

)

1,555,897

1,568,522

(47,508

)

1,521,014

1

%

3

%

Operating Income

237,739

28,804

266,543

206,673

47,508

254,181

15

%

9

%

Operating Margin

13.0

%

14.6

%

11.6

%

14.3

%

Interest Expense

(17,077

)

-

(17,077

)

(13,916

)

-

(13,916

)

23

%

23

%

Foreign Exchange Gain

1,742

-

1,742

(8

)

-

(8

)

Interest Income and Other

3,057

-

3,057

2,785

-

2,785

10

%

10

%

Income Before Taxes

225,461

28,804

254,265

195,534

47,508

243,042

15

%

8

%

Provision for Income Taxes (A-D)

48,593

11,599

60,192

35,024

26,457

61,481

39

%

1

%

Net Income

$

176,868

17,205

194,073

160,510

21,051

181,561

10

%

10

%

Earnings Per Share- Diluted (A-D)

$

2.97

0.29

3.26

2.70

0.35

3.05

10

%

10

%

Average Shares - Diluted

59,594

59,594

59,594

59,514

59,514

59,514

See the accompanying Notes to Unaudited Financial
Statements for a description of each Adjustment.

JOHN WILEY & SONS, INC.

FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED

APRIL 30, 2015 AND 2014

RECONCILIATION OF US GAAP TO ADJUSTED EPS
- DILUTED (UNAUDITED)

Fourth Quarter Ended

Twelve Months Ended

April 30,

April 30,

2015

2014

2015

2014

US GAAP Earnings Per Share - Diluted

$

0.79

$

0.60

$

2.97

$

2.70

Adjusted to exclude the following:

Restructuring Charges (A)

(0.07

)

(0.17

)

(0.34

)

(0.48

)

Impairment Charges (B)

-

-

-

(0.06

)

Non-recurring Tax Benefit (C)

0.05

-

0.05

-

Deferred Income Tax Benefit on UK Rate Change (D)

-

-

-

0.18

Adjusted Earnings Per Share - Diluted

$

0.81

$

0.77

$

3.26

$

3.05

NOTES TO UNAUDITED FINANCIAL STATEMENTS

Adjustments:

(A)

RESTRUCTURING CHARGES: The adjusted results for the three and
twelve months ended April 30, 2015 and the three and twelve months
ended April 30, 2014 exclude restructuring charges related to the
Company's Restructuring and Reinvestment Program of $4.9 million or
$0.07 per share, $28.8 million or $0.34 per share, $15.4 million or
$0.17 per share, and $42.7 million or $0.48 per share, respectively.

(B)

IMPAIRMENT CHARGES: The adjusted results for the twelve months
ended April 30, 2014 exclude impairment charges related to certain
technology investments of $4.8 million or $0.06 per share.

(C)

NON-RECURRING TAX BENEFIT: The adjusted results for the three and
twelve months ended April 30, 2015 reflect a non-recurring tax
benefit of $3.1 million or $0.05 per share related to tax deductions
claimed on the write-up of certain foreign tax assets to fair market
value.

(D)

Deferred Income Tax Benefit on UK Rate Change: The adjusted
results for the twelve months ended April 30, 2014 exclude deferred
tax benefits of $10.6 million, or $0.18 per share, associated with
tax legislation enacted in the United Kingdom that reduced the U.K.
corporate income tax rates by 3%. The benefits reflect the
remeasurement of the Company's deferred tax balances to the new
income tax rates of 21% effective April 1, 2014 and 20% effective
April 1, 2015 and had no current cash tax impact.

Non-GAAP Financial Measures:

In addition to providing financial results in accordance with
GAAP, the Company has provided adjusted financial results that
exclude the impact of other nonrecurring items described in more
detail throughout this press release. These non-GAAP financial
measures are labeled as "Adjusted" and are used for evaluating the
results of operations for internal purposes. These non-GAAP
measures are not intended to replace the presentation of financial
results in accordance with GAAP. Rather, the Company believes the
exclusion of such items provides additional information to
investors to facilitate the comparison of past and present
operations. Unless otherwise noted, adjusted amounts in the
attached schedules include foreign exchange.

JOHN WILEY & SONS, INC.

UNAUDITED SEGMENT RESULTS

FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED

APRIL 30, 2015 and 2014

(in thousands)

FOURTH QUARTER ENDED APRIL 30,

2015

2014

% Change

US GAAP

Adjustments(A)

Adjusted

US GAAP

Adjustments(A)

Adjusted

US GAAP

Adjustedexcl. FX

Revenue

Research

$

274,646

-

274,646

296,817

-

296,817

-7

%

-1

%

Professional Development

100,442

-

100,442

93,037

-

93,037

8

%

10

%

Education

66,558

-

66,558

67,235

-

67,235

-1

%

2

%

Total

$

441,646

-

441,646

457,089

-

457,089

-3

%

2

%

Direct Contribution to Profit

Research

$

139,258

233

139,491

145,240

3,184

148,424

-4

%

0

%

Professional Development

36,234

552

36,786

28,901

7,026

35,927

25

%

5

%

Education

11,149

487

11,636

8,937

516

9,453

25

%

28

%

Total

$

186,641

1,272

187,913

183,078

10,726

193,804

2

%

3

%

Contribution to Profit (After Allocated
Shared Services

and Admin. Costs)

Research

$

99,186

233

99,419

101,081

3,184

104,265

-2

%

2

%

Professional Development

11,486

552

12,038

2,654

7,026

9,680

333

%

30

%

Education

(8,582

)

487

(8,095

)

(9,715

)

516

(9,199

)

12

%

13

%

Total

$

102,090

1,272

103,362

94,020

10,726

104,746

9

%

6

%

Unallocated Shared Services and Admin. Costs

(44,027

)

3,653

(40,374

)

(46,478

)

4,669

(41,809

)

-5

%

0

%

Operating Income

$

58,063

4,925

62,988

47,542

15,395

62,937

22

%

10

%

Total Shared Services and Admin. Costs by
Function

Distribution and Operation Services

$

(21,031

)

131

(20,900

)

(27,111

)

3,421

(23,690

)

-22

%

-6

%

Technology and Content Management

(63,662

)

1,337

(62,325

)

(64,024

)

777

(63,247

)

-1

%

1

%

Finance

(13,564

)

74

(13,490

)

(14,593

)

(321

)

(14,914

)

-7

%

-6

%

Other Administration

(30,321

)

2,111

(28,210

)

(29,808

)

792

(29,016

)

2

%

1

%

Total

$

(128,578

)

3,653

(124,925

)

(135,536

)

4,669

(130,867

)

-5

%

-1

%

TWELVE MONTHS ENDED APRIL 30,

2015

2014

% Change

US GAAP

Adjustments(A)

Adjusted

US GAAP

Adjustments(A-B)

Adjusted

US GAAP

Adjustedexcl. FX

Revenue

Research

$

1,040,795

-

1,040,795

1,044,349

-

1,044,349

0

%

2

%

Professional Development

407,023

-

407,023

363,869

-

363,869

12

%

13

%

Education

374,622

-

374,622

366,977

-

366,977

2

%

3

%

Total

$

1,822,440

-

1,822,440

1,775,195

-

1,775,195

3

%

4

%

Direct Contribution to Profit

Research

$

483,413

4,555

487,968

479,419

7,774

487,193

1

%

2

%

Professional Development

140,588

4,385

144,973

128,976

11,860

140,836

9

%

4

%

Education

125,870

1,571

127,441

121,978

891

122,869

3

%

5

%

Total

$

749,871

10,511

760,382

730,373

20,525

750,898

3

%

3

%

Contribution to Profit (After Allocated
Shared Services

and Admin. Costs)

Research

$

315,789

4,555

320,344

305,727

7,774

313,501

3

%

5

%

Professional Development

38,116

4,385

42,501

22,167

11,860

34,027

-

28

%

Education

46,175

1,571

47,746

47,787

891

48,678

-3

%

1

%

Total

$

400,080

10,511

410,591

375,681

20,525

396,206

6

%

7

%

Unallocated Shared Services and Admin. Costs

(162,341

)

18,293

(144,048

)

(169,008

)

26,983

(142,025

)

-4

%

2

%

Operating Income

$

237,739

28,804

266,543

206,673

47,508

254,181

15

%

9

%

Total Shared Services and Admin. Costs by
Function

Distribution and Operation Services

$

(92,791

)

4,567

(88,224

)

(105,445

)

6,012

(99,433

)

-12

%

-10

%

Technology and Content Management

(248,914

)

2,622

(246,292

)

(255,349

)

14,020

(241,329

)

-3

%

2

%

Finance

(53,133

)

145

(52,988

)

(55,029

)

561

(54,468

)

-3

%

-1

%

Other Administration

(117,294

)

10,959

(106,335

)

(107,877

)

6,390

(101,487

)

9

%

6

%

Total

$

(512,132

)

18,293

(493,839

)

(523,700

)

26,983

(496,717

)

-2

%

0

%

See the accompanying Notes to Unaudited Financial
Statements for a description of each Adjustment. Certain prior
year amounts have been reclassified to conform
to the current year's presentation.

UNAUDITED ADJUSTED CONTRIBUTION TO PROFIT

INCLUDING ALLOCATED SHARED SERVICES AND ADMINISTRATIVE COSTS

FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED

APRIL 30, 2015 and 2014

(in thousands)

Fourth Quarter Ended

Twelve Months Ended

April 30,

April 30,

2015

2014

%Change

%Changeexcl. FX

2015

2014

%Change

%Changeexcl. FX

Research:

Direct Contribution to Profit

$

139,258

145,240

-4

%

2

%

483,413

479,419

1

%

3

%

Restructuring Charges (A)

233

3,184

4,555

7,774

Adjusted Direct Contribution to Profit

139,491

148,424

-6

%

0

%

487,968

487,193

0

%

2

%

Allocated Shared Services and Admin. Costs:

Distribution and Operation Services

(10,461

)

(10,972

)

-5

%

4

%

(44,602

)

(45,773

)

-3

%

-1

%

Technology and Content Management

(24,256

)

(25,953

)

-7

%

-2

%

(99,696

)

(101,922

)

-2

%

-2

%

Occupancy and Other

(5,355

)

(7,234

)

-26

%

-19

%

(23,326

)

(25,997

)

-10

%

-9

%

Adjusted Contribution to Profit (after allocated

$

99,419

104,265

-5

%

2

%

320,344

313,501

2

%

5

%

Shared Services and Admin. Costs)

Professional Development:

Direct Contribution to Profit

$

36,234

28,901

25

%

29

%

140,588

128,976

9

%

10

%

Restructuring Charges (A)

552

7,026

4,385

11,860

Adjusted Direct Contribution to Profit

36,786

35,927

2

%

5

%

144,973

140,836

3

%

4

%

Allocated Shared Services and Admin. Costs:

Distribution and Operation Services

(7,167

)

(8,883

)

-19

%

-16

%

(30,838

)

(37,673

)

-18

%

-17

%

Technology and Content Management

(12,227

)

(12,502

)

-2

%

-1

%

(47,574

)

(50,374

)

-6

%

-6

%

Occupancy and Other

(5,354

)

(4,862

)

10

%

12

%

(24,060

)

(18,762

)

28

%

29

%

Adjusted Contribution to Profit (after allocated

$

12,038

9,680

24

%

30

%

42,501

34,027

25

%

28

%

Shared Services and Admin. Costs)

Education:

Direct Contribution to Profit

$

11,149

8,937

25

%

30

%

125,870

121,978

3

%

5

%

Restructuring Charges (A)

487

516

1,571

891

Adjusted Direct Contribution to Profit

11,636

9,453

23

%

28

%

127,441

122,869

4

%

5

%

Allocated Shared Services and Admin. Costs:

Distribution and Operation Services

(2,977

)

(3,698

)

-19

%

-14

%

(12,863

)

(15,685

)

-18

%

-16

%

Technology and Content Management

(13,324

)

(11,808

)

13

%

15

%

(52,954

)

(46,787

)

13

%

14

%

Occupancy and Other

(3,430

)

(3,146

)

9

%

9

%

(13,878

)

(11,719

)

18

%

19

%

Adjusted Contribution to Profit (after allocated

$

(8,095

)

(9,199

)

12

%

13

%

47,746

48,678

-2

%

1

%

Shared Services and Admin. Costs)

Total Adjusted Contribution to Profit (after

$

103,362

104,746

-1

%

6

%

410,591

396,206

4

%

7

%

allocated Shared Services and Admin. Costs)

Unallocated Shared Services and Admin.
Costs:

Unallocated Shared Services and Admin. Costs

$

(44,027

)

(46,478

)

-5

%

-2

%

(162,341

)

(169,008

)

-4

%

-3

%

Restructuring Charges (A)

3,653

4,669

18,293

22,197

Impairment Charges (B)

-

-

-

4,786

Adjusted Unallocated Shared Services and Admin. Costs

$

(40,374

)

(41,809

)

-3

%

0

%

(144,048

)

(142,025

)

1

%

2

%

Adjusted Operating Income

$

62,988

62,937

0

%

10

%

266,543

254,181

5

%

9

%

See the accompanying Notes to Unaudited Financial Statements
for a description of each Adjustment. Certain prior year amounts
have been reclassified to conform to the current year's
presentation.

Note: The Company’s management evaluates performance using free
cash flow. The Company believes free cash flow provides a meaningful
and comparable measure of performance. Since free cash flow is not a
measure calculated in accordance with GAAP, it should not be
considered as a substitute for other GAAP measures, including cash
used for or provided by operating activities, investing activities
and financing activities, as an indicator of performance.